Abstract: Medical images are commonly stored in digital media and transmitted via Internet for certain uses. If a medical information image alters, this can lead to a wrong diagnosis which may create a serious health problem. Moreover, medical images in digital form can easily be modified by wiping off or adding small pieces of information intentionally for certain illegal purposes. Hence, the reliability of medical images is an important criterion in a hospital information system. In this paper, the Fresnelet transform is employed along with appropriate handling of the Arnold transform and the discrete cosine transform to provide secure distribution of medical images. This method presents a new data hiding system in which steganography and cryptography are used to prevent unauthorized data access. The experimental results exhibit high imperceptibility for embedded images and significant encryption of information images.